Finally, the last and most bullish event that will stimulate the stock market will be when the double taxation of dividends is eliminated. In my opinion, this will be the most bullish event in my lifetime. Impending dividend relief will represent a dam break that will cause yield-hungry investors to return to the stock market seeking tax-free dividends. Even better, companies with strong cash flows, such as Oracle (ORCL: news, chart, profile), will likely declare dividends.
With a war looming, states in dire straights,
public, personal and and government debt continuing to rise
It will be a bad time for Bush's tax cuts.
furthermore, even if we get the dividend tax cut, with yields still below 2% on the dow, and nil on the nasd there is little room for improvement.
Especially if investors start gobbling up the higher dividend stocks
It will push the yields down even further.
Who really cares about MSFT offering a dividend of 0.3%?
BTW, OJ wrote a decent article the other day.
sums up a lot of our feelings
But still a quick easy read siliconinvestor.com |
